NEW CONVERSION ISSUE

Hawke's Bay Tribune, Volume XXII, Issue 256, 12 October 1932, Page 7

NEW CONVERSION ISSUE

BRITISH TREASURY BONDS. PROMPT SUCCESS. (British Official Wireless.) (Received 12, 12.30 p.m.) ' Rugby, Oct. 11. The offer of £150,000,000 2 per cent. Treasury Bonds 1935-38 at par met with prompt success to-day. While cash applications were invited, the issue really represents a conversion operation, preference being given to applications from the holders of the £140,000,000 of 4J per cent. Treasury Bonds due for repayment on December 1. Such holders as exercised the right to exchange into the new 2 per cent, bonds will receive an equal amount of the latter plus a cash payment of 10/per cent. ' The announcement of the new conversion issue caused a sharp rise in British War Loan assented which opened at £lOl 17/6 and later rose to £lO2 7/6. The market interprets the rise in the new issue to mean that in the official view money is likely to remain cheap for some time to come. On December 1 the Government has to provide £165,000,000 for repayment of the unconverted 5 per cent. Wat Loan, £140,000,000 for redemption of the 4} per cent. Treasury Bonds and £13,000,000 for the remaining balance of the 4i per cent. It is assumed that the Government has in view plans other than the issue of short-term bonds for dealing with the balance of approximately £2,168,000,000.